EFFECTS OF FORENSIC ACCOUNTING ON FRAUD DETECTION AND PREVENTION IN THE NIGERIAN BANKING INDUSTRY

This study investigates the effect of forensic accounting on fraud detection and prevention in the Nigerian banking industry, with particular focus on selected banks in Osun State. Given the increasing complexity and sophistication of fraudulent activities in the financial sector, the research aims to assess how forensic accounting tools such as litigation support services and investigative techniques, contribute to combating fraud. The study adopts a descriptive survey research design, employing primary data collected through structured questionnaires administered to accounting and internal control personnel within the selected banks. Data were analyzed using descriptive and inferential statistics, including regression analysis to test the hypotheses. The findings reveal that forensic accounting has a significant positive effect on both fraud detection and fraud prevention. Specifically, litigation support services and investigative skills of forensic accountants play critical roles in uncovering fraudulent activities and establishing preventive control mechanisms. The study concludes that the integration of forensic accounting practices into the operations of banks enhances financial transparency, strengthens internal controls, and promotes stakeholder confidence. Based on these findings, the study recommends that Nigerian banks should invest more in forensic accounting expertise, provide continuous training for internal control staff, and adopt technology-driven forensic tools to address emerging fraud risks proactively. Regulatory bodies should also consider making forensic audits mandatory in high-risk financial institutions to further strengthen the industry’s anti-fraud framework. Keywords: Forensic accounting, fraud detection, fraud prevention, litigation support, investigation skills, Nigerian banking industry.